Rodrigo A. Cáceres González , Eduardo Zúñiga Leyton
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A game-theoretic framework to evaluate the strategic interaction of public and private desalination firms: A case study from Chile
This article develops a game-theoretic model to analyze the strategic behavior of public and private desalination firms, motivated by the Chilean context. In a duopoly setting, we examine how these firms allocate water between residential and mining sectors, under government influence through subsidies and production requirements. The analysis explores how the share of public production and differences in plant efficiency affect equilibrium outcomes. Results show that the substantial volumetric difference between residential and mining demand is a key driver of equilibrium strategic behavior. The model is calibrated using real data from the Coquimbo region in Chile.
期刊介绍:
Utilities Policy is deliberately international, interdisciplinary, and intersectoral. Articles address utility trends and issues in both developed and developing economies. Authors and reviewers come from various disciplines, including economics, political science, sociology, law, finance, accounting, management, and engineering. Areas of focus include the utility and network industries providing essential electricity, natural gas, water and wastewater, solid waste, communications, broadband, postal, and public transportation services.
Utilities Policy invites submissions that apply various quantitative and qualitative methods. Contributions are welcome from both established and emerging scholars as well as accomplished practitioners. Interdisciplinary, comparative, and applied works are encouraged. Submissions to the journal should have a clear focus on governance, performance, and/or analysis of public utilities with an aim toward informing the policymaking process and providing recommendations as appropriate. Relevant topics and issues include but are not limited to industry structures and ownership, market design and dynamics, economic development, resource planning, system modeling, accounting and finance, infrastructure investment, supply and demand efficiency, strategic management and productivity, network operations and integration, supply chains, adaptation and flexibility, service-quality standards, benchmarking and metrics, benefit-cost analysis, behavior and incentives, pricing and demand response, economic and environmental regulation, regulatory performance and impact, restructuring and deregulation, and policy institutions.